You may have heard that Forex trading is betting: betting against a specific exchange, an exchange currency or a firm or individual. In this sense Forex trading is just gambling.
But it is not a game of chess. There is a rule of poker where players have to show their cards to the dealer at the beginning of every hand in order to take a bet. In contrast, Forex betting is in principle the same rule for players who are betting only on the price of foreign currencies. That means there is no need for the dealer to see all the cards to take a bet; only the price in the currency that is being bet, or the spot price that the trader wants to sell for.
The trader is betting what he thinks the price will be at the end of each trading session. If he thinks the price will rise because the markets are open, he takes a risk, if he thinks the price will fall because the markets are closed for the holidays or in order to stop “fooling” the dealer. Of course he can even bet on the price dropping in order to reduce his risk.
Therefore, it is not a game of chess where the players, the dealer and the computer all work together to calculate the final result, but on the contrary it is a game of chance for all the players. The computer works out what the price of various currencies will be, and the dealers work out what they should sell the opposite currencies for as they expect to see a rise in the currency’s value.
How much forex profit is Forex trading?
This is a complex question that is often asked, and can be answered by combining a short answer from a well-known expert and a much longer one from many professionals.
If you compare the total profit or loss for a Forex position to that for a similar trade in any other country, the Forex trader generally makes a larger profit or loss. The trader does not “spend money” to bet against the currencies; so the currency’s real economy is not affected and the traders losses (or gains – depending on where they buy or sell the currencies) are not affected by the rise/fall in the price.
For the most part the traders profits per week are close to 40% or even more.
There are however no real rules to explain the success of a Forex position. It is all about luck and skill, and one can win big or lose big.
What advice should